Many tasks need determination and focus to launch a certain product in the market, safe and sound. As there are several to consider before making a reliable market product, the founders generally disregard the legal and official requirements of their startup during their initial stage. Due to this, the founders fail in creating a firm and legal foundation for their startup.
These legal mistakes can prove to be lethal to the company in many serious lawsuits. Due to the ignorance of founders meeting the legal standards can cease the startup from being financially aided to accelerate the business. Some of the most legal mistakes committed by the startups are:
Choosing the Business Entity
Picking the perfect entity plays quite a deep role in creating your startup legally reliable while forming a new business. There are multiple structures are available to pick from sole proprietorship or partnership, a registered company, etc. The startup owners that rush directly into the registration process without researching much about the right option can regress the business development. Some of the most important rules that a rookie founder must establish while making a decision are liability, growth plans, tax treatment, and legal expenses.
Founders’ Agreement
This story is from the August 2021 edition of Small Enterprise.
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This story is from the August 2021 edition of Small Enterprise.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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Job Creation: Startups Starting Up!
Do startups create jobs? This could unarguably be one of the most sought after questions in recent times. While it is out and clear that startups make way for employment opportunities, the discussion boils down to the importance of startups in creating jobs. The startup ecosystem indeed plays a major role in job creation and is touted as an economic panacea.
Importance Of Technology For SMEs
We, humans, by nature, tend to be lazy. We always try to make tools, machines, gadgets, etc., to save us time and energy and give us satisfactory results. Technology is the charisma that kept changing our way of living and our style of doing things drastically. Our way of conducting business is also not spared by the Tsunami of technology.
Importance Of Digital Economy
Economic activities that result from billions of interactions between individuals, businesses, data, devices, and processes constitute a digital economy and India is well on its path to becoming a digitally advanced economy. Driven by cheap data cost, faster connectivity, and affordable smartphones, India had over 1,160 million internet subscribers in February 2020, as per the Telecom Regulatory authority of India (TRAI), second only to China.
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ENTREPRENEURSHIP EDUCATION FOR BUDDING MINDS
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The Economic survey in 2019-20 using World Bank’s data on entrepreneurship stated that India ranks third in the number of new firms created. However, India ranks significantly lower in terms of intensity when compared with countries like UK and US.
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The year 2021 marked 30 years since economic liberalisation surfaced in India and writing on this occasion, the richest man of India; Mukesh Ambani said that bold economic reforms such as ending the license –quota raj, liberalisation of trade and industrial policies, freeing up capital markets and financial sector helped our GDP grow ten folds since 1991 and India transformed from an economy of scarcity in 1991 to an economy of sufficiency in 2021.
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TECHNOLOGY AN ENABLER FOR SMALL BUSINESSES
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